Are you in compliance with the SEC’s new marketing rule?

Effective May 4, 2021, the SEC’s new marketing rule for investment advisers, 17 CFR § 275.206(4)-1, made significant changes to the way SEC-registered advisers should think about advertising and solicitation. 

What’s in the SEC’s new marketing rule?

Few compliance officers have time to work their way through the 430-page final release of the rule, and while the rule only affects SEC-registered advisers, for now, states will likely begin to adopt their own advertising rules that mirror the new SEC rule over the next few years. To complicate things further, the SEC will likely continue to provide guidance and opinions, clarifying and interpreting aspects of the rule. 

Despite what some headlines seem to suggest, the rule affects advertising beyond testimonials, as well as a solicitation, which is now referred to as “endorsement.” With massive rule changes come significant ramifications for every SEC-registered investment adviser and, before too long, every state-registered adviser, as well. Those ramifications differ from firm to firm, depending on how the firm plans to employ traditional advertising, social media, testimonials, and endorsements. 

This begs the question: Are you prepared?

Do you know what the new marketing rule means for your firm? How will your firm’s advertising change, and are your disclosures in compliance with the new rule? Do you have relationships that did not require solicitor disclosures in the past but require them now? Do you have time to read the several-hundred-page release, and if not, do you have compliance professionals with whom to consult during this rule transition? 

AdvisorLaw’s RIA Compliance Team is here to provide consultation tailored specifically to your firm’s needs concerning the new SEC marketing rule and its implications when it comes to your firm. Our compliance team includes both securities attorneys and certified securities compliance professionals (CSCP). If you have any questions — call us — we’ll work with you to ensure that your questions are answered and your advertising and solicitation disclosures are compliant. 

Learn more about AdvisorLaw’s RIA Compliance services.


    Courtney Raymond
    Director of RIA Services